Tyrone Borough budget now available for inspection at municipal building

Tyrone Borough has made its 2007 proposed budget available to the public.
The borough published advertisements in The Daily Herald last week to inform residents and other interested parties the budget was available for public inspection.
Earlier this month, Tyrone Borough Council decided to increase two different taxes it already levies; the Earned Income Tax and its EMS or local services tax. One tax that won’t increase under the consensus reached by council is the borough’s real estate tax. That will stay at 29 mills.
Council also directed finance manager, Phyllis Garhart, to have the proposed budget reflect increased fees for certain services the borough provides.
The Borough was facing an estimated $178,000 deficit in its general fund budget. The borough had originally projected revenues at $1,643,000 and expenses of $1,821,000 in the budget. The separate sewer and water fund budget were deemed to be “in good shape.”
The proposed budget released to The Daily Herald showed projected revenues of $1,769,800 and expenses still projected at $1,821,000.
Garhart explained the revised revenue figures were from projected increases in revenues due to the tax increases and the increase in certain fees.
In recent years, the borough has used money from its capital reserve to cover deficits to avoid tax increases. The tax and fee increases left the borough with a $51,200 shortfall. The borough will use money from its capital reserve to cover that amount and balance its budget.
Council could still tweak the budget further at its December meetings. Ordinances regarding the tax increases are scheduled to be considered and the budget is scheduled for adoption at the Dec. 11 meeting.
At a meeting earlier this month, it was council’s consensus to raise the EIT by .50 percent. Under the proposal the borough’s EIT would go to 1.25 percent. The Tyrone Area School District charges its own separate EIT. The .50 increase in the borough’s EIT is expected to generate an estimated $96,000.
Council also proposed raising the EMS (local services) tax to $52 a year, which is expected generate an additional $25,000 using the $12,000 or under income exemption. Those moves would raise a combined $121,000, which would have left the deficit at $56,400. With the proposed increase in certain fees the projected deficit was reduced to $51, 200.
Instead of raising property taxes, council decided to dip into its cash reserve of $1,032,000 to balance the budget.
Garhart did note that the money in the capital reserve has been earmarked for general government, the police department, streets and highways and under the category recreation/park/trees/library.
Garhart explained that although some of capital expenses may not occur in 2007, she indicated enough would happen to reduce the capital reserve to approximately $500,000 by the end of 2007.